Looking at the current happenings in the nation’s political system, a lot are optimistic on how it will negatively affect the nation’s growth policies, but the nation’s treasury says the turmoil will not in any way divert the government’s attention from implementing growth policies
pointing out most of the nation’s disturbing issues like that of the Rating Agency and the inability to oust President Zuma, the treasury said South Africa is a “vibrant democracy with many voices”and therefore will not be distracted from its plans to boost growth by the controversy surrounding Zuma.
Speaking further, the Treasury spokeswoman Phumza Macanda said this does not mean “that we will be distracted and sidetracked from the work that we have to do.”
“(The) government appreciates that growth has to be tackled with a sense of urgency. The Minister of Finance (Pravin Gordhan) is working closely with business to come up with concrete plans that will have a positive impact on growth in the near term and that process is far advanced.”
Speaking on the importance of economic growth to the nation, Marek Hanusch, the World Bank senior economist for South Africa, said yesterday that SA growth policies was important to contain the fiscal and current account deficits.
Hanusch said this while commenting at the launch of Africa’s Pulse, an analysis of issues shaping Africa’s economic future, by the World Bank.
According to him, fiscal and current account deficits were expected to fall this year, following a consolidation Budget by Gordhan in February.
However, ratings agency Standard & Poor’s had last week said that the nation’s political tensions posed a risk to the sovereign credit rating in Africa’s most-industrialized economy as these could divert the government’s attention from issues around policy implementation.
More to this, last week’s data revealed that the economy was picking up in the past two months, but analysts said global economic weakness and domestic political tension could make the growth short-lived.
After being absent for the two years, South Africa returned to international debt markets attracting more than twice the $1.25 billion (R18.69bn) offer of bonds on sale.
This sale showed the return of investors’ confidence even as the nation faced a credit downgrade to junk and as the presidency struggles to stay put in government amid all criticisms.